How strong is Nvidia stock?
Based on analyst ratings, Nvidia's 12-month average price target is $140.85. Nvidia has 9.66% upside potential, based on the analysts' average price target. Nvidia has a consensus rating of Strong Buy which is based on 37 buy ratings, 4 hold ratings and 0 sell ratings.
Overall, analysts continue to remain bullish about Nvidia stock, even as they've struggled to keep up with price-target hikes post-stock split. The consensus rating is a "Strong Buy,” with a mean target price of $139.41, indicating an upside potential of about 16.7% to current prices.
Assuming Nvidia does hit $184.5 billion in revenue in fiscal 2027, its top line would have increased at a compound annual rate of 45%. If the semiconductor giant's growth tapers off in the two that follow years to, let's say 25% a year, its revenue could reach $288 billion after five years.
Based on its fiscal 2024 earnings of $1.21 per share, Nvidia's bottom line could jump to $7.24 per share after five years. Multiplying the projected earnings after five years with the Nasdaq-100's forward earnings multiple of 29 (using the index as a proxy for tech stocks) points toward a stock price of $210.
How Nvidia's Post-Split Stock Could Rise Tenfold. In the year since Nvidia's boffo Q1 FY 2024 report released in May 2023, the company's stock has risen 248%. Nvidia stock — after splitting 10-for-1 early in June — could rise from $100 to $1,000 by 2026.
Prominent chip stocks look primed to rebound Thursday after the sector's worst daily drop since 2020. Nvidia shares are up 2.2% in premarket action Thursday, while Marvell shares are ahead 1.6%, Super Micro shares are up 1.4% and Advanced Micro Devices shares are ahead 1.3%.
NVIDIA has fallen sharply in recent days as global chip maker stocks are hit by possible export controls to China and comments by Donald Trump.
10-years: A $1,000 investment in Nvidia 10 years ago has compounded at 74.5 percent annually and would be worth $261,490.87 today.
Hence, based on current estimates, the chances of Nvidia's share price crossing $1,000 in the next decade appear slim. These projections, however, can change in case Nvidia makes even more dramatic advances in AI technologies in the coming years.
There's an easy answer to this question: It's absolutely not too late to buy Nvidia stock.
Will Nvidia surpass Apple?
Nvidia surpasses Apple to become the second-largest public company in the US. The chipmaker, Nvidia, has been the biggest beneficiary of the AI mania dominating Wall Street this year. Nvidia, Wall Street's favorite artificial intelligence darling, is continuing to swell to staggering heights.
Nvidia has been growing at a phenomenal rate as demand for the company's products rises rapidly. Nvidia makes chips that power cryptocurrency and more recently it's benefited from the emergence of artificial intelligence (AI), which requires the company's powerful chips.
(We) expect healthy growth for Nvidia's data centre revenue beyond 2024.” While still on the higher side, the company's falling P/E ratio coupled with the significant stock price increase is a strong indication of the company's ability to generate growth and the investor confidence in its future earnings potential.
NASDAQ: NVDA
So, despite its meteoric rise since last year, the AI market still has plenty of room to run, with Nvidia well-positioned to keep seeing major gains and creating millionaires.
The largest owners of Nvidia stock are asset managers, such as BlackRock and Vanguard. These companies hold Nvidia stock in mutual funds and ETFs on behalf of their clients. Among individual investors, the largest shareholders are company insiders and board members, like founder Jensen Huang.
NVDA Stock Forecast FAQ
Based on analyst ratings, Nvidia's 12-month average price target is $140.85. Nvidia has 9.66% upside potential, based on the analysts' average price target. Nvidia has a consensus rating of Strong Buy which is based on 37 buy ratings, 4 hold ratings and 0 sell ratings.
Multiplying the projected earnings with Nvidia's five-year average forward earnings multiple of 39 suggests that its stock price could hit $2,266 per share (barring any stock splits or other events) after five years. That would translate into a jump of 162% from current levels.
Though analysts are generally positive about Nvidia stock, some are questioning the sustainability of earnings growth as well as current valuation levels. For instance, New Street Research recently downgraded Nvidia due to its extended valuation.
| Period | Return | Benchmark |
|---|---|---|
| 6 months | 110.52% | 17.92% |
| 1 year | 148.51% | 22.68% |
| 5 years (annualized) | 95.40% | 13.47% |
| 10 years (annualized) | 75.16% | 10.97% |
Since Nvidia's P/E ratio is nearly 74, the company would need to generate annual EPS growth of roughly 74% over the next five years to be undervalued today. Some investors could believe this lofty growth rate is quite possible. After all, Nvidia's EPS skyrocketed 629% year over year in the first quarter of 2024.
Can Nvidia stock go higher?
Healthy earnings growth points toward more upside
Analysts are expecting the company's earnings to increase at an annual rate of 43% for the next five years. Based on its fiscal 2024 earnings of $1.21 per share, Nvidia's bottom line could jump to $7.24 per share after five years.
Nvidia will produce such a massive 'cash gusher' that it will have to buy back more stock, because all that money has nowhere else to go, analyst says. Nvidia CEO Jensen Huang at Hon Hai Tech Day, in Taipei on Oct. 18, 2023.
A $20,000 investment made in the semiconductor giant 10 years ago would be worth more than $3.4 million today -- up by around 170 times in value. It is also worth noting that the company has taken less than a decade to turn a $20,000 investment into precisely a $1 million.
AI colossus Nvidia was the most anticipated stock split of 2024. Three brand-name businesses with well-defined competitive advantages are likely to follow in Nvidia's footsteps and become Wall Street's next stock-split stocks.
NVIDIA long term debt for 2022 was $10.946B, a 83.53% increase from 2021.
